Bitcoin retreats after hawkish FOMC minutes – Cryptocurrency News



In the last couple of months, Bitcoin and most major altcoins have been recovering from their 2022 bottoms, closely following the positive performance of stocks amid signs of inflation easing in the US. Nevertheless, this relief rally paused after the latest FOMC minutes provided no concrete signals around what’s next in the normalization cycle, leaving risky assets adrift. Hence, is this a temporary retracement or are crypto markets on the verge of a new decline?

It's all about the Fed

In 2022, the myth that cryptocurrencies are not correlated with traditional assets because they are not backed by macroeconomic factors has been shuttered. In reality, cryptos have been acting as stocks on steroids, tracking tech stocks’ performance but with higher volatility. Thus, the main driving force behind them continues to be the magnitude and pace of the Fed’s monetary tightening.

Last week, cryptos got a significant boost due to the softer than expected US CPI reading that increased market expectations that the Fed could scale down its aggressive approach later in the year. In contrast, after the Fed’s recent statements that it would resume with its series of rate hikes as there is a long way till inflation is back under control, major coins drifted lower. Therefore, cryptos could potentially escape their recent peaks and edge higher if broader macroeconomic indicators start pointing towards inflation cooling off.

Big names endorse adoption

Even though crypto markets have experienced a major downfall this year, with Bitcoin losing almost 70% of its peak value, many leading companies in the world have increased their investments on the broader crypto space. According to a new report from Blockdata, in the last nine months, Alphabet has invested $1.5 billion in several crypto projects, mostly focusing on four blockchain firms. Moreover, the South Korean electronics giant Samsung has also funded 13 crypto-related companies, spending more than $1 billion.

In other news, BlackRock, the world’s largest asset management company, announced the launch of a spot private trust, which would allow the increasing number of institutional investors interested in cryptos to step into the market. The fund stated that this investment vehicle was created to cover the needs of clients who seek exposure to cryptos but lack the knowledge and competency to efficiently manage the operational life cycle of these assets.

ECB to implement stricter rules

On Wednesday, the ECB announced that it plans to introduce new regulatory guidelines under which banks that offer crypto assets would need to have the necessary capital and expertise to withstand potential downturns or even a severe crisis in the crypto space. Furthermore, the ECB aims to harmonise different national rules that are applied by each EU country so that crypto companies operating in Europe comply with a specific and unique framework.

Bitcoin pauses rebound

Even though Bitcoin has managed to faintly rebound from its 2022 lows, it is currently experiencing a downside correction after failing to cross above the $25,200 mark.

To the downside, the 50-day simple moving average (SMA), currently at $22,220, could act as the first line of defence. Diving beneath that region, the attention could shift to $20,670.

Alternatively, if buyers re-emerge and push the price higher, initial resistance could be encountered at the recent rejection point of $25,200. Any further upside moves might then stall at $27,950

Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.

Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.

Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.

Nous utilisons des cookies pour vous donner la meilleure expérience possible de notre site internet. En savoir plus ou modifier vos paramètres de cookies.

Avertissement sur les risques : votre capital est à risque. Les produits à effet de levier ne sont pas recommandés pour tous. Veuillez consulter notre Divulgation des risques